Protecting patents

SHENZHEN: Even though he is in his 60s, Zhang Ziwen recently started a company to develop his patented technology that could enable more efficient supplies of electricity - using just 2 percent of the copper needed by traditional approaches.

The inventor in this southern city and his patent will receive better protection after the adoption of a series of new or revised laws on protecting intellectual property rights (IPRs) next year, says Xu Youjun, director of Shenzhen's intellectual property office.

We will highlight the importance of protection to further encourage the use of patents, Xu says.

Companies and individuals in the city applied for more than 28,000 patents from January to October this year, ranking Shenzhen second for medium- and large-sized cities. The figure is almost the same for all of 2006, according to official statistics.

More than half of inventions were put into use, a year-on-year increase of 33.6 percent, ranking Shenzhen first in the country.

Shenzhen companies, especially in electronic information, biomedicine, new materials, new energy and electromechanical integration, have introduced a large number of products to the market with their own core patented technologies, Xu says.

According to the latest figures from the State Intellectual Property Office, Shenzhen companies had the first four positions among the top 15 for the most invention patents in 2006, he says.

But he admits that there is still a long way to go to better protect inventors. Xu's office has strengthened its efforts by using the city's rights to formulate legislation.

The draft of a new local IPR law was submitted to the city's legislature in late November.

It's new elements address law enforcement cooperation, protecting legal rights abroad, supervision over conventions and exhibitions, case transfers and intermediate organizations, according to Xu.

Punitive measures for violators will also be strengthened in the proposed law.

Companies or individuals who are convicted of violating IPRs or have received two or more administrative sanctions will not be eligible for government-funded projects for two years, according to the draft. As well, repeat offenders will have the maximum fine doubled.

The new law aims to crack down on violations, lower the costs for patent holders to safeguard their legal interests and solve problems in existing judicial practices, Xu notes.

In calculating economic losses, the law will for the first time take into account research and development costs as well as income from illegal operations.

It will also introduce an administrative arbitration system for parties in an IPR dispute to seek mediation from a government department that has the right to rule on the conflict and set compensation.

The ruling can be appealed to law courts, according to the draft.

The law is expected to be approved by the legislature early next year, Xu says.

The city will also accelerate adoption of revised regulations protecting confidential corporate technical data and will draft a new law to protect Internet software copyright, he adds.

The government will continue to offer incentive policies and increase funding to better protect IPRs in its effort to promote healthier and more sustainable development of the economy and society, says Xu.